Solana (SOL) appears poised for a significant jump as its weekly chart shows an attractive bullish setup. Over the past few days, Solana price has stabilized despite reaching a new high on November 22.
However, if the altcoin breaks through key resistance levels, it could hit the $300 mark. Here’s why.
Solana Has Backing Indicators
On Solana’s weekly chart, the altcoin has formed a classic bullish pennant pattern – a positive indicator that hints at the possibility of further growth.
A bullish pennant pattern consists of two consecutive increases separated by a short period of convergence. The flagpole formed during an almost vertical price rise as buyers overwhelmed sellers. Next is the correction phase, creating parallel upper and lower resistance levels that resemble a flag.
As seen below, SOL has broken out of this pattern, indicating that the convergence period has ended. Accordingly, the bullish momentum could continue and this Token could establish a steady rally. If this trend continues, Solana price could surpass its all-time high of $264.66.
Amid this growth, on-chain data from Santiment shows an increase in Solana’s social volume. Built on social data, this index measures search text related to a cryptocurrency across different online platforms.
When the index increases, this shows that the demand for property has increased. In most cases, this indicates rising demand. Conversely, a decrease in social volume indicates a decrease in searches for the asset, implying low interest in cryptocurrencies.
Therefore, the recent increase in SOL’s social dominance suggests that, if sustained, the token could soon trade higher than $236.
SOL Price Prediction: Convergence Phase Nears End
Meanwhile, on the daily chart, SOL price is trading above the Ichimoku Cloud. The Ichimoku Cloud is a technical analysis tool designed to identify support and resistance levels, momentum, and trend direction in a single view.
Made up of many components, this indicator provides detailed information about potential price moves. The cloud itself represents key support and resistance areas.
When the cloud is above the price, it represents resistance, suggesting that a retracement may occur. However, in this case, Solana’s price is above the cloud, indicating strong support.
If the trend continues, SOL could surpass its all-time high and reach $300. Conversely, if resistance is encountered on Solana’s weekly and daily charts, a drop to $215.17 is possible.